Archive: May 2006
The Aftermath
Whatever will we talk about now? Now that a Houston jury has convicted former Enron executives Kenneth L. Lay and Jeffrey K. Skilling on fraud and conspiracy charges, let's do a little housekeeping, then take a look ahead. There are a couple of good stories in today's Houston Chronicle worth...
By Frank Ahrens | May 26, 2006; 4:09 PM ET | Comments (7)
The Specter of Prison Becomes Real
One commenter to this blog earlier today brought up the point that, perhaps up until now, Jeffrey K. Skilling and Kenneth L. Lay may not have contemplated spending actual time in jail. Now, assuming their convictions do not get overturned on appeal, that is a near-certainty. Legal experts have speculated...
By Frank Ahrens | May 26, 2006; 7:28 AM ET | Comments (7)
Lay Finally Emerges
Kenneth L. Lay just poppped out of the court house with his family. The holdup: He had to come up with the $5 million required for his bail so he could go free. CBNC was reporting that there were federal agents in Lay's luxury Houston penthouse -- the last liquid...
By Frank Ahrens | May 25, 2006; 4:24 PM ET | Comments (13)
Taking a Breath
Phew! Now that we're through the first flurry of activity reporting the verdicts against Kenneth L. Lay and Jeffrey K. Skilling, let's sit back and take a breath and think about what we've seen and what's ahead. First, a little housekeeping, which I should have gotten to earlier: Unlike in...
By Frank Ahrens | May 25, 2006; 3:16 PM ET | Comments (2)
Lay in Prayer
Jeffrey K. Skilling and his lawyer, Dan Petrocelli, emerged from the court house and briefly addressed the media shortly after the verdict. But Kenneth L. Lay has yet to emerge. CNBC reported a few minutes ago that Lay and his family, as well as his lawyers and much of the...
By Frank Ahrens | May 25, 2006; 1:38 PM ET | Comments (20)
Grooving on Glisan
After the verdict was announced, several jurors talked to reporters, explaining what they found compelling in the testimony and evidence. One of the defense's key hopes was that the jury would discount the highly damaging testimony of former Enron chief financial officer Andrew S. Fastow. Fastow had pleaded guilty to...
By Frank Ahrens | May 25, 2006; 1:07 PM ET | Email a Comment
Guilty, Guilty and Guilty
It's pretty clear that the government prosecution hit a home run with the verdicts against former Enron chief executives Jeffrey K. Skilling and Kenneth L. Lay, which were just released. Lay was found guilty on all six couns, Skilling on 19 of 28 counts. The jury, which began deliberation May...
By Frank Ahrens | May 25, 2006; 12:51 PM ET | Comments (2)
Ahrens, Day 30: That's a Wrap
Now that Kenneth L. Lay has finished his testimony, I'm heading back to D.C. It's been a ton of fun, at least partly thanks to my colleagues in the Overflow Press Room (OPR). And it's been a real privilege to have had a front-row seat (well, at least via projection...
By Frank Ahrens | May 3, 2006; 1:44 PM ET | Comments (11)
The Color of Crime
As I wrote shortly after arriving here one month ago, my hotel is in what I like to call the "Bail Bonds District" of Houston, owing to the many businesses of that type around my lodgings. Upon further inspection, it really turns out to be the "Crime & Justice District."...
By Frank Ahrens | May 3, 2006; 11:05 AM ET | Comments (1)
Lay, Day 5.25: That's a Wrap
Enron founder Kenneth L. Lay finished his testimony Tuesday about two hours into the day, walking off the stand just before 10 a.m. As soon as he left, a string of character witnesses followed, including Houston Astros owner Drayton McLean, who said, basically, Lay's a good guy but I never...
By Frank Ahrens | May 3, 2006; 7:42 AM ET | Comments (5)
Touch My Monkey!
There was a light moment in court this morning following a slip of the tongue by Kenneth L. Lay. During cross-examination, federal prosector John Hueston reminded Lay that his lead lawyer, Michael Ramsey, had publicly referred to former Enron treasurer -- and prosecution witness -- Benjamin Glisan as a "monkey."...
By Frank Ahrens | May 2, 2006; 11:47 AM ET | Comments (3)
Lay's Testimony Ends
Kenneth L. Lay wrapped up his nearly six days on the witness stand in his own defense at a little before 10 a.m. CT by answering one final question from his lawyer, George "Mac" Secrest: "Did you love Enron?" "I loved Enron very much and Enron's employees very much," Lay...
By Frank Ahrens | May 2, 2006; 11:01 AM ET | Comments (1)
This Lawyer Is Working FOR You?
Is there a point at which "folksy" crosses over the line into "seemingly clueless?" Defense lawyer George "Mac" Secrest is questioning his client, Kenneth L. Lay, on redirect examination now about something called TCV -- Total Contract Value -- as a way of measuring how well Enron's Energy Services business...
By Frank Ahrens | May 2, 2006; 10:11 AM ET | Comments (1)
Raid on Enron
Kenneth L. Lay, finishing his redirect examination under his defense lawyer George "Mac" Secrest, just recalled the circumstances surrounding the descent of FBI agents on Enron in early 2002. Lay said he'd heard on television that lawyers for plaintiffs that were suing Enron in civil actions, such as shareholders stung...
By Frank Ahrens | May 2, 2006; 9:38 AM ET | Comments (1)
Lay, Day Five: It's in the Past. Or Not.
Federal prosecutor John Hueston finished his cross-examination of Enron founder Kenneth L. Lay on Monday afternoon -- a total of a little more than two full days on the stand at the hands of the government, and five days overall, at least so far. Defense lawyer George "Mac" Secrest will...
By Frank Ahrens | May 2, 2006; 7:44 AM ET | Comments (7)
Enron: A Fun Place to Work
In his redirect examination of Kenneth L. Lay, defense lawyer George "Mac" Secrest is diving into an employee survey that Lay commissioned when he returned to the company in August 2001. Of about 30,000 employees, Lay said he got more than 3,000 responses. Secrest is trying to prove that Enron...
By Frank Ahrens | May 1, 2006; 5:36 PM ET | Email a Comment
Where Are MY Groupies?
Just when I'm thinking I'm getting the hang of this, I get eclipsed once again by Houston Chronicle Business blogger Loren Steffy. During the afternoon break just now, the evidently-hunky Steffy was cornered by a couple of female fans of his blog, telling him how much they love it. Huh....
By Frank Ahrens | May 1, 2006; 5:09 PM ET | Comments (4)
The Long and Short of Shorting
In redirect examination -- where the defense gets to try and refute assertions made during the government's cross-examination -- Kenneth L. Lay testified that his son, Mark, was not short-selling Enron stock as the government argued. Lay and Jeffrey K. Skilling before him testified that a cabal of short-sellers had...
By Frank Ahrens | May 1, 2006; 4:22 PM ET | Comments (5)
Honey, I'm Home
Kenneth L. Lay's defense lawyer George "Mac" Secrest just took over from prosecutor John Hueston, who finished his rough three-day cross-examination. The look on Lay's face when he greeted his lawyer was a combination of utter relief and serenity. In fact, I'm not sure one man has ever looked happier...
By Frank Ahrens | May 1, 2006; 4:07 PM ET | Comments (2)
Lay Cross-Ex Wraps Up
Federal prosecutor John Hueston finished his cross-examination of Kenneth L. Lay by detailing Lay's assets in Enron's final days as a way of hammering home what Hueston hopes jurors will see as heartlessness. Just before Enron declared bankruptcy in December 2001, Lay drew out his final $1 million from his...
By Frank Ahrens | May 1, 2006; 3:35 PM ET | Comments (1)
70 Million Pieces
Watching federal prosecutor John Hueston cross-examine Enron founder Kenneth Lay on his stock sales during 2001 reminds me of a quote from "Chariots of Fire," when the running coach tells the runner what he's about to take on: "I'll tear you apart, piece by bloody piece." Hueston is doing a...
By Frank Ahrens | May 1, 2006; 3:02 PM ET | Email a Comment
Lay vs. His Lawyer
Kenneth L. Lay is contradicting his own lawyer now. Prosecutor John Hueston quoted Lay's lead lawyer -- Michael Ramsey -- from his opening statement 14 weeks ago: "You only sold off Enron stock after you sold off all your other stocks." Lay contradicted his lawyer's opening statement -- a statement...
By Frank Ahrens | May 1, 2006; 12:56 PM ET | Comments (1)
Don't Hate the Playa, Hate the Game
Kenneth L. Lay just flashed some unexpected street cred in cross-examination with prosecutor John Hueston. Lay verified under testimony that he told former Enron communications officer Mark Palmer that the Wall Street Journal had a "hate on" for Enron. Word. That's hard one to refute....
By Frank Ahrens | May 1, 2006; 11:02 AM ET | Email a Comment
Lay Gives Props to WSJ
Both Kenneth L. Lay and Jeffrey K. Skilling have disparaged a series of Oct. 2001 articles in the Wall Street Journal that questioned the accounting of the outside-of-Enron partnerships known as the LJMs -- deals that eventually led to Enron's downfall. Lay and Skilling said the stories were filled in...
By Frank Ahrens | May 1, 2006; 10:38 AM ET | Email a Comment
Best Quote Yet
I think Kenneth L. Lay just delivered the quote of the trial -- at least of the four weeks I've been here -- during cross-examination with government prosecutor John Hueston: "The corpse is on the gurney now, Mr. Hueston, and you're carving it up any way you like. I didn't...
By Frank Ahrens | May 1, 2006; 10:10 AM ET | Comments (1)
Lay Battles On
In his third day of cross-examination, Enron founder Kenneth L. Lay continues to battle with prosecutor John Hueston, but has so far kept his anger in check this morning. Lay is accusing Hueston of selectively picking only damaging information to make his case ... duh, that's what prosecutors do. Lay...
By Frank Ahrens | May 1, 2006; 9:49 AM ET | Email a Comment
Last Crack at Lay
Government prosecutor John Hueston likely will wrap up his cross-examination of Enron founder Kenneth L. Lay today, or Tuesday at the latest. After the cross, the defense will get a redirect examination of Lay, in an attempt to answer questions brought up by the prosecution. After that, the government may...
By Frank Ahrens | May 1, 2006; 7:45 AM ET | Email a Comment
Knockin' Around H-town
As much as I've worried and been warned about the weather here, I must say that in my nearly one month in Houston (come Tuesday), it's been insufferably hot only about a week's worth of days. Oddly, it's the mornings that feel most suffocating. When I walk out of my...
By Frank Ahrens | May 1, 2006; 12:53 AM ET | Comments (1)
